Skip to main content

LIC pulled up, asked to pay Rs. 1.06 lakh for harassing claimant

Life Insurance Corporation has been pulled up by a consumer forum here for "knowingly harassing" the widow of a policy holder by denying her claim and directed to pay her Rs. 1.06 lakh.

The New Delhi District Consumer Disputes Redressal Forum noted that as per the conditions of the policy issued to the complainant's husband no medical report was required, but LIC had denied the claim on the ground that he had not disclosed that he had been suffering from TB for over four years.

"We have gone through the contents of complaint and noticed that non-medical policy for sum assured of Rs. 50,000 was issued to the complainant by opposite party (LIC) over which there is no medical report is required as per norms of LIC policy.

"Despite the above facts, opposite party deliberately/arbitrarily denied the claim without supporting evidence which is a clear case of deficiency/unfair trade practice that opposite party knowingly harassed consumers without any reason except to suck the blood just like a blood hounder as if money goes from LIC officials' pocket," a bench presided by CK Chaturvedi said.

The forum directed LIC to pay Delhi resident Hasmukhi Devi the assured amount of Rs. 50,000 under the policy along with Rs. 35,000 as compensation and Rs. 21,000 as cost of litigation.

According to Devi, her husband Ram Avtar, who was insured under a LIC policy since December 12, 2003 for a sum of Rs. 50,000 had died on April 11, 2005, during the period of the insurance cover.

She had filed the claim for assured amount after that and the same was rejected by LIC.

LIC had rejected the claim on the ground that her husband had been suffering from TB for over four years and had not disclosed the same while availing the policy.

Article referred: http://www.hindustantimes.com/India-news/NewDelhi/LIC-pulled-up-asked-to-pay-Rs-1-06-lakh-for-harassing-claimant/Article1-1095981.aspx

Comments

Most viewed this month

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...

Winding-Up Petition Can’t Be Used If Bona Fide Payment Disputes Pending

The Karnataka High Court, in the case of M/s Uttam Industrial Engineering Ltd vs  M/s Shree Basaveshwar Sugars Ltd, has held that a winding-up petition has serious  ramifications on the financial standing of a company and cannot be used in cases  where there is a bona fide dispute regarding the amount owed by one party to the  other and in such cases the company court should relegate the matter either to the  civil court or arbitral tribunal. In this case, Uttam Industrial Ltd entered into a contract with Basaveshwar Sugars Ltd  to provide machinery and equipment for a sugar plant. Article referred:  http://www.livelaw.in/remedy-winding-petition-cant-relied-upon-bona-fide-payment-disputes-karnataka-hc/

A liquidator must pay GST on sale of assets of a defunct company

The West Bengal Authority of Advance Ruling has ruled that a National Company Law Tribunal appointed liquidator must have the GST registration till all liabilities cease to exist and that the liquidator must pay goods and services tax (GST) on sale of assets of a defunct company under liquidation, as the sale is effectively supply of goods.